Death of Labour Law? Comparative Perspectives Martin Vranken MELBOURNE UNIVERSITY PRESS An imprint of Melbourne University Publishing Limited 187 Grattan Street, Carlton, Victoria 3053, Australia [email protected] www.mup.com.au First published 2009 Text © Martin Vranken, 2009 Design and typography © Melbourne University Publishing Limited, 2009 This book is copyright. Apart from any use permitted under the Copyright Act 1968 and subsequent amendments, no part may be reproduced, stored in a retrieval system or transmitted by any means or process whatsoever without the prior written permission of the publishers. Every attempt has been made to locate the copyright holders for material quoted in this book. Any person or organisation that may have been overlooked or misattributed may contact the publisher. Text design by Phil Campbell Cover design by Phil Campbell Typeset by J & M Typesetting Printed by Griffin Press, SA National Library of Australia Cataloguing-in-Publication entry: Death of labour law?: comparative perspectives / Martin Vranken 9780522856293 (pdf) 9780522856309 (pbk.) Includes index. Bibliography. Labour laws and legislation—Western countries. Labour laws and legislation—Developed countries. 344.172201 In memory of Dr Szakats (1915–2001) Contents Abbreviations vi Preface ix 1. Comparative Study of Labour Law: The Proverbial Apples and Oranges? 1 2. Labour Law: Subject or Method? 14 3. Employee Status 44 4. Employee Representation 75 5. Labour Courts 107 6. The International Dimension of Labour Law 142 7. From Collectivism to Individualism (and Back?) 173 8. Labour Law and Flexicurity 204 Epilogue 235 Appendix 1: Community Charter on Fundamental Social Rights of Workers (1989) 237 Appendix 2: Charter of Fundamental Rights of the European Union (2000) 244 Appendix 3: Common Principles on Flexicurity (2007) 256 Bibliography 258 Index 268 Abbreviations AC Appeal Cases ACJ Arbitration Court Judgments ACTU Australian Council of Trade Unions AFL American Federation of Labor AILR Australian Industrial Law Reports ALR Australian Law Reports APEC Asia-Pacific Economic Cooperation ATR Australian Taxation Reports AWA Australian Workplace Agreement Benelux Belgium, the Netherlands, Luxembourg BGB Bürgerliches Gesetzbuch C Case CA Court of Appeal CAR Commonwealth Arbitration Reports CIO Congress of Industrial Organizations CLR Commonwealth Law Reports CMLR Common Market Law Reports Cth Commonwealth EC European Community ECR European Court Reports ECSC European Coal and Steel Community EEA European Economic Area EEC European Economic Community ETUC European Trade Union Confederation EU European Union Euratom European Atomic Energy Community HCA High Court of Australia ILO International Labour Organization IR Industrial Reports ITEA Individual Transitional Employment Agreement KB King’s Bench L Legislation MB Management Board NAFTA North American Free Trade Agreement NATO North Atlantic Treaty Organization NES National Employment Standards NLRA National Labor Relations Act NZLR New Zealand Law Reports OECD Organisation for Economic Co-operation and Development OEEC Organisation for European Economic Co-operation P President QB Queen’s Bench SB Supervisory Board SE Societas Europaea SEA Single European Act SH Shareholders SME Small and Medium (-sized) Enterprise TCR Termination, Change and Redundancy TEU Treaty on European Union UNICE Union of Industrial and Employers’ Confederations of Europe Abbreviations vii Preface Labour law is no longer the trendy subject to research and teach it once was. In Europe the golden period of labour law lies squarely in the 1960s (at a national level) and in the 1970s (at the supranational level of what was then called the European Economic Community). Today the bright young minds of legal scholars with a social con- science tend to be focused on areas such as environmental law or, even more in vogue, refugee law and international human rights. Labour law, as a major object of study in its own right, risks rapidly becoming a relic of the past. At one level this book has been written by way of a nostalgic reflex. It retraces the birth and subsequent growth, especially after World War II, of labour law as an autonomous academic discipline. It demonstrates the gradual fall from grace of labour law as a Sonderdisziplin (‘special discipline’)—as the Germans would have it, commencing with the deregulation movement of the 1980s but con- tinuing long after Reaganomics and Thatcherism gave way to the new buzz words of ‘globalisation’ and ‘international competitiveness’. However, the purpose of this book is not to add to the existing litera- ture of tirades against the free market. Publications with such suggestive titles as Travail flexible, salariés jetables1 (Flexible Work, Throw-Away Employees), edited by French economist Michel Husson, while undoubtedly thought-provoking, can be overly negative and needlessly cynical. Instead, Death of Labour Law? seeks to invite constructive debate about the relevance of labour law in shaping the social fabric of the Western industrialised world for the twenty-first century. The book has been written in the firm belief that labour law, even when defined narrowly in terms of employee protection law, must continue to have a role that is equal in importance, rather than merely subser- vient, to the perceived imperatives of a globalised economy. Civilised society, now and into the future, depends on a proper balance between stability and flexibility. In Europe a newly coined term in this regard is ‘flexicurity’. This term represents the focal point of an influential Green Paper by the European Commission on modernising labour law in the twenty-seven member states of the European Union. Parallels can be drawn with the legislative reform agenda of the Rudd-Gillard administration in Australia where a revamped system of collective (workplace) bargaining is meant to operate against the double backdrop of a ‘reinforced’ floor of statutory employee entitle- ments and a ‘modernised’ award system. For an Australian audience the immediate relevance of the book derives from the ‘Forward with Fairness’ approach to the labour law reform agenda of the Rudd government. New Zealand readers, for their part, may wish to peruse this text against the backdrop of par- ticularly challenging parliamentary elections faced by the Labour-led coalition of Helen Clark in late 2008. When writing an initial draft of the manuscript I had occasion to test some of my ideas on some unsuspecting, yet willing partici- pants in a summer course organised by Louisiana State University at the University of Lyon III in France. I am grateful to then Chancellor Costonis for this opportunity. A visiting professorship to teach com- parative labour law at the University of Virginia allowed further useful feedback and fine-tuning. I also wish to put on record my sincere appreciation of the warm hospitality received from European col- leagues at the University of Leuven over many years. Melbourne, Solstice Day, 2008 Notes 1 Husson, Travail flexible, salariés jetables. Fausses questions et vrais enjeux de la lutte contre le chômage. x Death of Labour Law?